Cracks Are Starting To Appear In Europe: ‘Austerity’ Ignites Masses In Greece, Norway Faces Liquidity Shock in Record Redemption, The Sustainability of Italian Public Finances Is In jeopardy, And Europe’s Rescue Strategy Could Start To Unravel as Italy’s Voters Reject Conditions

Merkel Advisor Feld: “Euro Crisis Will Return Shortly And With A Vengeance”
The Italian economy would not find their way out of the recession, according to the pessimistic assessment by Lars Feld: “The sustainability of Italian public finances is in jeopardy. The euro crisis will therefore return shortly with a vengeance.”

Apparently, the Italians were not ready to move on the path of reform that has been taken by Mr. Mario Monti, Field said.

“You can not expect that Italy’s European partners or the ECB will stabilize the Italian economy, when its people are not ready for reform.”

And making sure Feld is not alone, he was joined by Anton Boerner, head of Germany’s BGA exporters’ association, who in turn said Italy must reform tax, labor, judicial system or risk “irreparable damage” of euro. Finally, Boerner says if Italy not willing to reform, “we have to think about how to deal with a modified eurozone.”

What exactly a “modified” eurozone means we don’t know. We will, however, surely find out soon enough.